Must-Read Money Stories for Tuesday, March 14

by March 14, 2017
With its new purchase, Intel is hoping to break into the driverless auto systems industry. Photo taken from Flickr.

With its new purchase, Intel is hoping to break into the driverless auto systems industry. (Photo taken from Flickr)

Intel’s driverless shakeup

Reuters reports that Intel has agreed to buy Israeli autonomous vehicle technology firm Mobileye for $15.3 billion on Monday. The deal could thrust the American company into the competition to develop driverless systems for global automakers. Intel has been looking to reach beyond its core computer semiconductor business, and the move promises to escalate the already high stakes among self-driving start-ups. Last year, Goldman Sachs projected the market for driverless car systems would grow from about $3 billion in 2015 to $96 billion in 2025 and $290 billion in 2035.

Chinese to pay Kushners $400 million

The family of Jared Kushner, President Trump’s son-in-law and senior adviser, is set to receive more than $400 million from a prominent Chinese company that is investing in the clan’s marquee Manhattan office tower. The planned $4 billion transaction includes terms that some real estate experts consider unusually favorable for the Kushners—including both a sizable cash payout from the Anbang Insurance Group and an equity stake in a new partnership, Bloomberg reported. It is unclear whether the deal could prompt federal review, as has occurred when Anbang bought other properties in the United States, including Manhattan’s famous Waldorf Astoria.

Airbnb IPO? Don’t hold your breath

Airbnb might have just closed a billion-dollar funding round, but CEO Brian Chesky is in no rush to take his company public, according to Fortune. Speaking on Monday at the New York Stock Exchange luncheon, Chesky insisted that while the company is working to ensure it is ready to go public, the IPO process can take two years. Investors would do well to take Chesky’s statement with a grain of salt though, as he made a similar remark in a 2015 interview.

Say goodbye to easy money

The Federal Reserve is set to raise interest rates at the conclusion of its two-day meeting on Wednesday, signaling another nail in the coffin of its era of easy money, according to the New York Times. Economists also expect that the Fed will signal two more increases will be in the cards before the end of the year, barring any major economic setbacks. It’s not just the policy that is striking investors. Over the past month, half a dozen senior Fed officials made public comments that suggested greater collective confidence and unanimity that the economy is strong enough to handle higher borrowing rates.

 

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